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Penfed defined their Pyramiding debt response

Frequent Contributor

Penfed defined their Pyramiding debt response

They sent me a letter which says:

"Pyramiding debts -presently have maximum open-ended credit."

"Utilization of 0% of open ended credit lines."

"Increase utilization or reduce open ended credit"

 

 

 

Message 1 of 17
16 REPLIES
Contributor

Re: Penfed defined their Pyramiding debt response

lol too funny.. I never even got anything in the mail about my denial.. just online denial..
7/16/09 - EQ 684, TU 691

7/25/09 - EQ 682 (-2) 7th INQ did it.
8/21/09 - EQ 684 Bounced back from the Inq even though none expired. There was a new credit account opened on the same day. *shrug*
10/23/09 - EQ 691
Message 2 of 17
Senior Contributor

Re: Penfed defined their Pyramiding debt response

"increase uti or reduce open ended credit"

so they're instructing you to show more debt or kill some accts.?  pen fed speak, wow i'm confuzzled.


hobojon wrote:

They sent me a letter which says:

"Pyramiding debts -presently have maximum open-ended credit."

"Utilization of 0% of open ended credit lines."

"Increase utilization or reduce open ended credit"

 


 

DCU EQ 5.0, Citi EQ 08 Bankcard, PenFed EX NG2
EX 08: AFCU, Amex, Chase, PSECU EX 98(?)
TU 08: Barclays, Discover
Message 3 of 17
Frequent Contributor

Re: Penfed defined their Pyramiding debt response

Since the credit pull is good for 60 days (or 90 depending on which CSR you get). Maybe I should reapply every day for the next two months and lower my requested credit limit by $100.00 each time.
Message 4 of 17
Moderator Emerita

Re: Penfed defined their Pyramiding debt response


hobojon wrote:

They sent me a letter which says:

"Pyramiding debts -presently have maximum open-ended credit."

"Utilization of 0% of open ended credit lines."

"Increase utilization or reduce open ended credit"

 

 

 



So it sounds like they're saying that in their opinion, you already have plenty of credit, and you don't need any more.

Sort of an inverted pyramid!

Interesting --before, it has meant that people had lots of open accounts, especially new accounts, but not reducing their debt.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 5 of 17
Frequent Contributor

Re: Penfed defined their Pyramiding debt response


hobojon wrote:

They sent me a letter which says:

"Pyramiding debts -presently have maximum open-ended credit."

"Utilization of 0% of open ended credit lines."

"Increase utilization or reduce open ended credit"


Thanks for posting the info...what a bunch of malarky (sp?). Pyramiding is basically a catchall reason for them to deny an application. But it does prove what some of us were saying, they view open (available) credit as a negative. Simply ridiculous! Oh well, guess thats one cash rewards card I'll never carry. Smiley Very Happy

01/04/10 TU 778 EQ 731
08/05/09 TU 762 EQ 722
02/12/09 TU 722 EQ 704 EX 690
EQ sensitive to inqs & student loan.
Message 6 of 17
Frequent Contributor

Re: Penfed defined their Pyramiding debt response


haulingthescoreup wrote:

Interesting --before, it has meant that people had lots of open accounts, especially new accounts, but not reducing their debt.

As far as Penfed is concerned I don't believe it has ever meant that. Penfed has always believed available credit is future debt.

I used to think that account age was a factor. Not any longer.

Message 7 of 17
Established Contributor

Re: Penfed defined their Pyramiding debt response

Wow, that "definition" doesn't make a lot of sense.  In that case, I may never apply with them.  
pattycake's FICOs: 6/2/10 - TU: 708; EX: ???; EQ: 749
Message 8 of 17
Contributor

Re: Penfed defined their Pyramiding debt response

that cash rewards card is pretty aweosme though.. What out there is better?
7/16/09 - EQ 684, TU 691

7/25/09 - EQ 682 (-2) 7th INQ did it.
8/21/09 - EQ 684 Bounced back from the Inq even though none expired. There was a new credit account opened on the same day. *shrug*
10/23/09 - EQ 691
Message 9 of 17
Senior Contributor

Re: Penfed defined their Pyramiding debt response


haulingthescoreup wrote:

hobojon wrote:

They sent me a letter which says:

"Pyramiding debts -presently have maximum open-ended credit."

"Utilization of 0% of open ended credit lines."

"Increase utilization or reduce open ended credit"

 

 

 



So it sounds like they're saying that in their opinion, you already have plenty of credit, and you don't need any more.

Sort of an inverted pyramid!

Interesting --before, it has meant that people had lots of open accounts, especially new accounts, but not reducing their debt.

A couple of years ago you might have been able to secure a card if you stayed under the radar for 6 months or so but now nope. I am glad I got in when I did.

Message 10 of 17